Different image of TCH

Hoang Huy Investment Financial Services JSC (HoSE: TCH) listed shares on the Hochiminh Stock Exchange (HoSE) in 2016 and is often referred as an enterprise in the field of tractor business include manufacturing, assembling trucks and distributing US tractors. However, in fact, real estate business is the key business that contributes the largest part in revenue and profit structure.

In the period 2016 to 2018, sales of US tractors and spareparts accounted for 80-90% of total revenue and contributed 70-80% of gross profit. However, in 9 months of 2019 (fiscal year April 1^st – December 31^st), the proportion of this business decreased to 33%, giving way for real estate business with 64%, while the proportion of these two businesses contributed in gross profit is 27% and 70% respectively.

Because real estate has better gross profit margin (over 40%) than US tractors business (20-30%), the company's gross profit margin improved from 24% in 2016 to 39% in 9 months of 2019. Profit after tax reached VND 457 billion, 2.3 times higher YoY.

Unit: VND billion

In fact, real estate is no longer a new business of TCH. In the previous period, the company had invested in Golden Land Building Commercial - Service - Housing Center Project (275 Nguyen Trai, Hanoi) through a subsidiary – Hung Viet Commercial JSC and recognized a great amount of revenue and profit from 2014 - 2015.

In addition, TCH has invested in renovating old apartments such as residential areas U1, U2, U3 Le Loi Street, Ngo Quyen District and apartment complexes HH1, HH2, HH3, H4 at Lach Tray Street, Dong Quoc Binh Ward... in Hai Phong City.

After the success of Golden Land, TCH continued to develop Pruksa Town social housing project (through its associated company - HHS), Hoang Huy Riverside, Gold Tower complex of apartments and commercial center, low-rise building Hoang Huy Mall. In particular, Pruksa Town project has basically been completed, Gold Tower and Hoang Huy Riverside projects have begun to be handed over to customers (2019-2020), Hoang Huy Mall project is being constructed very bustling and expected to be handed over in 2020. These are the projects that mainly bring revenues and profits for TCH at the the moment.

Cumulative billion-dollar project

After 2 years of preparation, TCH said that since 2019, the company has focused on investing in real estate projects in Hai Phong and Hanoi. TCH plans to carry out many projects synchronously in the period 2020-2025.

TCH leaders assessed that attractive policies and good infrastructure such as Hanoi - Hai Phong expressway, investing in international airport, upgrading and constructing Lach Huyen deep-water port, helping to grow investment capital in Hai Phong impressively. Over the past three years, Hai Phong has risen to become the city with the highest growth rate in the country, with an annual GDP growth rate of over 16%. This is an important basis for the demand of housing in Hai Phong to grow positively and is just the beginning of the development of the real estate market here.

With confidence and careful preparation of investment plans, TCH is preparing procedures to start Hoang Huy Grand Tower high-rise projects (1.2ha) with a total capital of VND 1,500 billion at 2A So Dau, convergence node of Binh bridge foot, Hung Vuong street and Bach Dang street; and Hoang Huy Commerce project (3ha) located on Vo Nguyen Giap street, the gateway of Hai Phong city with a total capital of VND 4,000 billion.

Perspective of Hoang Huy Commerce project of TCH in Hai Phong

Especially, Hoang Huy New City new urban area project has a planned area up to 65ha, located about only 2km from the city center, connecting through a new bridge named Hoang Van Thu. This is a new bridge with a unique architecture that has attracted attention all over the country. Hoang Huy New City is like a new riverine city, with a central position. Scale of the project area is over 65 hectares and the investment scale will reach 30,000 billion VND (equivalent to 1.3 billion USD).